Moatable Announces Delisting Proceedings of the ADS by NYSE

Rhea-AI Summary

Moatable, Inc. (NYSE: MTBL) faces delisting from the New York Stock Exchange due to falling below the listing standard market capitalization. The company's ADSs will be suspended immediately, with trading moving to the OTC Markets' Pink market. Moatable has the right to appeal this decision within ten business days.

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• Moatable, Inc. is facing delisting from the NYSE due to falling below the market capitalization requirement, which may impact investor confidence and liquidity of the stock.

Insights

Market Research Analyst

The immediate suspension of trading on the NYSE for Moatable, Inc. signifies a critical juncture for the company, potentially affecting investor confidence and its future fundraising capabilities. The move to the OTC Markets' Pink market, while providing a temporary trading platform, is often associated with less stringent reporting requirements and reduced liquidity. This transition could result in a narrower investor base, as institutional investors typically have policies restricting investment in non-NYSE or NASDAQ listed companies.

Furthermore, the company's contemplation of applying for the OTCQB or OTCQX marketplaces indicates a strategic effort to regain credibility and investor interest. These tiers of OTC Markets offer increased visibility and regulatory standards, which could help Moatable, Inc. in mitigating the negative connotations associated with the Pink market. Nevertheless, the shift to OTC trading venues generally reflects a downgrade in prestige and could impact the company's valuation and ability to attract quality institutional investors.

Financial Analyst

Moatable, Inc.'s delisting from the NYSE due to failure to maintain the required market capitalization threshold is a concern for current and potential shareholders. This delisting event will likely lead to a decrease in share price due to heightened perceived risk and the aforementioned liquidity concerns. The company's ability to raise capital through the equity markets may be significantly hampered, which could affect its operational and expansion strategies, especially considering the capital-intensive nature of SaaS businesses.

Investors should closely monitor the company's next steps, including the appeal process with the NYSE and its plans for the OTC Markets. Any strategic partnerships, asset sales, or restructuring plans announced in response to the delisting could provide insights into the company's long-term viability and management's ability to navigate through financial challenges.

Legal Expert

The legal implications of Moatable's delisting involve a complex interplay of regulatory requirements and shareholder rights. The company's right to appeal the NYSE decision opens a window for potential reversal of the delisting, albeit a slim one given the clear capitalization criteria set by the NYSE. Shareholders may seek to understand the legal ramifications, including any changes in shareholder rights and protections when moving from a major exchange to OTC trading.

Moreover, the company's management must ensure compliance with SEC regulations during this transition, as failure to do so could lead to further legal and financial repercussions. The legal team's expertise will be important in navigating the appeal process, potential SEC filings for delisting and ensuring transparent communication with shareholders about the implications and next steps.

PHOENIX, April 4, 2024 /PRNewswire/ -- Moatable, Inc. (NYSE: MTBL) ("Moatable" or the "Company"), which operates two US-based SaaS businesses, Lofty Inc.© and Trucker Path Inc.©, today announced that it has received a notice letter from the New York Stock Exchange (the "NYSE", or the "Exchange") that the staff of NYSE Regulation has determined to commence proceedings to delist the American depositary shares ("ADSs"), each representing 45 Class A ordinary shares of the Company — ticker symbol MTBL — from the NYSE. Trading in the Company's ADSs will be suspended immediately.

The NYSE Regulation reached its decision to delist the Company's ADSs pursuant to Section 802.01B of the NYSE's Listed Company Manual because the Company had fallen below the NYSE's continued listing standard requiring listed companies to maintain an average global market capitalization over a consecutive 30 trading day period of at least $15 million.

Under NYSE delisting procedures, the Company has a right to a review of this determination by a Committee of the Board of Directors of the Exchange within ten business days after receiving the delisting notice. The NYSE will apply to the Securities and Exchange Commission to delist the ADSs upon completion of all applicable procedures, including any appeal by the Company of the NYSE Regulation staff's decision.

The Company's ADSs will open on the OTC Markets' Pink market on April 4, 2024. In the meantime, the Company is evaluating alternatives, including applying for the OTCQB or OTCQX marketplaces.  

About Moatable Inc.

Moatable, Inc. (NYSE: MTBL) operates several US-based SaaS businesses including Lofty and Trucker Path. Moatable's American depositary shares, each of which currently represents forty-five Class A ordinary shares, trade on NYSE under the symbol "MTBL".

Forward-Looking Statements

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about Moatable's beliefs and expectations, including statements on making investments and operating businesses that generate long-term returns for investors, and expectations for future growth and innovation are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Moatable's goals and strategies; Moatable's future business development, financial condition and results of operations; Moatable's expectations regarding demand for and market acceptance of its services; Moatable's plans to enhance user experience, infrastructure and service offerings. Further information regarding these and other risks is included in our annual report on Form 10-K for the year ended December 31, 2022 and other documents filed with the SEC. All information provided in this press release is as of the date of this press release, and Moatable does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Investor Relations Department
Moatable, Inc.
Email: ir@moatable.com 

View original content:https://www.prnewswire.com/news-releases/moatable-announces-delisting-proceedings-of-the-ads-by-nyse-302108186.html

SOURCE Moatable, Inc.

FAQ

Why is Moatable, Inc. facing delisting from the NYSE?

Moatable, Inc. is facing delisting from the NYSE due to falling below the continued listing standard requiring a minimum average global market capitalization over a consecutive 30 trading day period of at least $15 million.

When will the trading of Moatable, Inc.'s ADSs be suspended?

Trading in Moatable, Inc.'s ADSs will be suspended immediately upon the delisting from the NYSE.

What are the alternative marketplaces Moatable, Inc. is considering?

Moatable, Inc. is evaluating alternatives such as applying for the OTCQB or OTCQX marketplaces after moving to the OTC Markets' Pink market.

What is the ticker symbol for Moatable, Inc.?

The ticker symbol for Moatable, Inc. is MTBL.